Grayscale Report: Trade Tensions May Boost Bitcoin Adoption

A recent report by Grayscale Investments suggests that trade tensions could drive greater adoption of Bitcoin in the long term. The firm’s research indicates that increased tariffs, leading to potential economic stagnation and inflation (stagflation), may benefit Bitcoin as a scarce commodity. This is because traditional assets often suffer during such conditions, while Bitcoin finds its value preserved by these economic pressures. Additionally, trade tensions could reduce demand for dollar reserves, creating opportunities for alternative currencies like gold and Bitcoin to thrive.